JK Tyre’s 6.54% margin trails sector peers by 6.57 points
Other income was material to pre-tax profit, while interest and depreciation absorbed a large part of operating profit.
Filed 07 Aug 2026, 13:35 IST · JK Tyre & Industries Ltd (JKTYRE)
Key takeaways
- JK Tyre’s consolidated operating margin was 6.54%, 6.57 percentage points below the 13.11% median for 122 reporting Consumer Discretionary peers.
- Other income of Rs 21.65 cr was material against profit before tax of Rs 55.14 cr, making reported profit quality an important watchpoint.
- Net profit was Rs 44.09 cr, or Rs 1.55 per share, after interest of Rs 99.08 cr and depreciation of Rs 125.65 cr.
Price around the results
Margin remains well below the peer set
JK Tyre reported consolidated operating profit of Rs 258.22 cr on revenue of Rs 3,946.24 cr, translating into a 6.54% operating margin. That was 6.57 percentage points below the 13.11% median among 122 Consumer Discretionary companies that had reported the quarter. The company ranked 22nd from the bottom on this measure.
Interest and depreciation limited profit conversion
Operating profit of Rs 258.22 cr was reduced by interest of Rs 99.08 cr and depreciation of Rs 125.65 cr, leaving profit before tax at Rs 55.14 cr. Other income of Rs 21.65 cr was material relative to pre-tax profit, so net profit of Rs 44.09 cr was not driven only by operating performance. The tax rate was 20.04%.
No sequential or annual direction is available in this release
The quarter’s consolidated revenue was Rs 3,946.24 cr and operating expenses were Rs 3,688.02 cr, but there is no reported year-on-year or sequential comparison to identify the growth or cost driver. There is also no multi-quarter trend in the reported data, leaving the current 6.54% margin as the main benchmark for the next update.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹3,946 cr |
| Other income | ₹22 cr |
| Expenses | ₹3,688 cr |
| Operating profit | ₹258 cr |
| Operating margin (%) | 6.54% |
| Interest | ₹99 cr |
| Depreciation | ₹126 cr |
| Profit before tax | ₹55 cr |
| Tax | ₹11 cr |
| Net profit | ₹44 cr |
| EPS (₹) | ₹1.55 |
Operating margin of 6.54% compares with a Consumer Discretionary sector median of 13.11% across 122 peers that have reported Q1FY27.
What to watch
- Whether consolidated operating margin moves above or below 6.54%.
- Whether interest remains around Rs 99.08 cr as operating profit changes.
- Whether other income remains material relative to profit before tax of Rs 55.14 cr.